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Expat savers warned to get out of Britannia or lose out
| Published: | 30 Apr at 6 PM |
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Expat savers with Britannia International Isle of Man are being warned to move their savings fast or lose out on rapidly falling interest rates.
Part of the troubled UK-based Co-operative Bank, Britannia International announced recently that its Isle of Man base is to close down. The wind-down will result in steadily reducing interest rates aimed at encouraging its customers to make the move, although those on fixed rates are unlikely to be affected until term maturity.
Variable rate accounts must be closed during 2014, and those still open will be automatically shut down on 28 February next year. Savers should understand that there’s no point in waiting until the turn of the year to switch, as by 8 July, interest payments on variable rate accounts will cease.
Even earlier, from 6 May, Easy Access accounts will stop paying interest, and those on Easy Access Plus will only get between 0.2 and 0.25 per cent, with even this ceasing on 5 June. From 6 May, the rate for the Regular Savers account will fall to 0.5 per cent and, on 5 June, rates on the 60-day notice account will be cut to 0.2 per cent and end on 8 July.
The rest of Britannia’s accounts will suffer a similar fate, and all personal accounts are now at 0.0 per cent. As with other Isle of Man banks, savers are covered by the Depositors’ Compensation Scheme, giving protection to the first £50,000 and, in the case of joint accounts, £100,000 is covered.
Part of the troubled UK-based Co-operative Bank, Britannia International announced recently that its Isle of Man base is to close down. The wind-down will result in steadily reducing interest rates aimed at encouraging its customers to make the move, although those on fixed rates are unlikely to be affected until term maturity.
Variable rate accounts must be closed during 2014, and those still open will be automatically shut down on 28 February next year. Savers should understand that there’s no point in waiting until the turn of the year to switch, as by 8 July, interest payments on variable rate accounts will cease.
Even earlier, from 6 May, Easy Access accounts will stop paying interest, and those on Easy Access Plus will only get between 0.2 and 0.25 per cent, with even this ceasing on 5 June. From 6 May, the rate for the Regular Savers account will fall to 0.5 per cent and, on 5 June, rates on the 60-day notice account will be cut to 0.2 per cent and end on 8 July.
The rest of Britannia’s accounts will suffer a similar fate, and all personal accounts are now at 0.0 per cent. As with other Isle of Man banks, savers are covered by the Depositors’ Compensation Scheme, giving protection to the first £50,000 and, in the case of joint accounts, £100,000 is covered.
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